The Tools of Quality

240
C H A P T E R 1 0
The Tools of Quality
Chapter Objectives
After completing this chapter, you should be able to:
1. Use process maps to improve a process.
2. Use extended value stream maps to improve supply chain performance.
3. Implement Ishikawa’s seven basic quality tools for improvement.
4. Use the new seven tools to improve managerial decision making.
5. Discuss other tools such as balanced scorecards, spider charts, and dashboards.
To be effective, quality improvement in manufacturing or services should address the needs of the system as a whole. In this book we have addressed quality management from an integrative perspective. This perspective has encompassed the many functional areas of
business, including supply chain management, marketing, accounting, human resources, operations, engineering, and strategy. None of these fields of endeavor operates in a vacuum. They are
all interrelated and interdependent.
ImprovIng The SySTem
To be successful, a business or organization must balance the needs of these different functional
areas around a coherent business vision and strategy. The objective of the system is to satisfy
the customer. Customer satisfaction means higher customer retention, which leads to improved
profitability.
A quality system (Figure 10-1) uses the business model with a focus on the customer
and includes the dynamics of continual improvement, change, planning, and renewal. Continual
improvement is necessary for a company to learn to grow. Companies that cannot adapt find
themselves with stagnant cultures and labor forces. Many managers, on discovering that their organization has reached this point, believe they must resort to draconian measures such as layoffs
and organizational reengineering to achieve change. If they had pursued continual improvement
and learning in the first place, they might not have reached this juncture.
This quality system (which is discussed in greater depth in Chapter 15) is not just a series
of variables and relationships. It is an interconnected, interdisciplinary network of people, technology, procedures, markets, customers, facilities, legal requirements, reporting requirements,
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and assets that interact to achieve an end. The most important aspect of the system is the people.
People are the engine of creativity and innovation. Technology is very good at performing rote
tasks; however, technology in and of itself cannot innovate. Therefore, how we manage people
may be the most important key in this system to unlock an organization’s potential. W. Edwards
Deming was always adamant that we should continually and forever improve the system of production. The system includes people.
In this chapter, we introduce the basic seven (B7) tools of quality and the new seven
(N7) tools (also referred to as the managerial tools). The seven basic tools are simple to use in
continuous improvement efforts. The tools often are used by individuals and in teams, are useful at all levels of the organization, and can be applied by people of different educational levels.
As you learn and apply the tools of quality, you will also appreciate their wide application and
usefulness.
IShIkawa’S BaSIc Seven ToolS of QualITy
The basic seven tools of quality may be used in a logical order. Note that this is only a “typical”
order of use for these tools; they can be used in almost any order. Figure 10-2 shows this order.
The flowchart gives the team the big picture of the process to be improved. Process data are
collected using a check sheet. The data are analyzed using either histograms, scatter plots, or
control charts. The root causes of the problems associated with the process are identified using
a cause-and-effect diagram. Finally, causes are prioritized using Pareto analysis. These tools are
discussed in more depth on the following pages.
fIgure 10-1 Quality System Model
Processes
Information and Finance
Closeness to Customers
Culture
Organizational Learning and Knowledge
People
Customer
Service
Enterprise
Capabilities
Quality
Planning
and
Management
Quality
Control
Quality
Assurance
Inte
grative A
pproach
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process maps
A process map is a picture of a process. The first step in many process improvement projects
is to create a map of the process as it exists. This useful step also determines the parameters for process improvement. The concept is that we must know the process before we can
improve it.
The language of process maps can vary from the simple to the complex. A simple set of
symbols is provided in Figure 10-3. The diamond indicates there is a decision to be made, and
they often identify different paths of sequences in the process map. The parallelogram appears
whenever materials, forms, or tools enter or leave the process. The rectangle is the processing
symbol—the work that is actually performed. The start/stop symbol and the page connector are
used for the convenience of the people using the process map. A few simple rules for process
maps follow:
š Use these simple symbols to chart the process from the beginning, with all arcs in the process map leaving and entering a symbol. The arcs represent the progression from one step
to the next. (See A Closer Look at Quality 10-1.)
š Develop a general process map and then fill it out by adding more detail or a subflowchart
to each of the elements.
Process
Maps
Check
Sheets
Early Stages Medium Final Stages
Histograms
Scatter
Plots
Cause
&
Efect
Diagrams
Control
Charts
Pareto
Analysis
fIgure 10-2 Logical Map of the Order for the Basic Seven (B7) Tools Source: Based on M. Brassard, The Memory Jogger II,
published by GOAL/QPC, 2 Manor Parkway, Salem, New Hampshire, 2004. Reprinted with permission of GOAL/QPC.
fIgure 10-3 Basic Mapping Symbols
Decision
Input/Output
Flowline
Processing
Start/Stop
Page connector
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š Step through the process by interviewing those who perform it—as they do the work.
š Determine which steps add value and which don’t in an effort to simplify the work.
š Before simplifying work, determine whether the work really needs to be done in the first
place.
The process map in Figure 10-4 shows a simple process used in a city planning department
to issue permits allowing applicants to take possession of newly built homes. Figure 10-4 shows
the current process. In Figure 10-5, the process is simplified because the front desk is given more
authority and training to process the forms without assigning them for analyst review. The analyst review does not add value for the organization or the customer, so it can be eliminated. The
steps of process mapping include
1. Settling on a standard set of process mapping symbols to be used.
2. Clearly communicating the purpose of the process map to all the individuals involved in
the exercise.
fIgure 10-4 Process
Mapping: Home
Occupation Process—
Current
Start
Customer
submits
application
Complete? No
Yes
Log-in by
department
specialist
Action letter
Analyst
reviews
Deputy
director
assigns
Action?
No
Yes
Site
visit
Appealed
Back to beginning
depending on appeal
Withdrawn
by applicant
Research
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3. Observing the work being performed by shadowing the workers performing the work.
4. Developing a map of the process.
5. Reviewing the process map with the employees to make needed changes and adjustments
to the process map. (Note that it is often helpful to chart processes from the customer’s
point of view in addition to the worker’s point of view.)
6. Developing a map of the improved process.
A special type of process map is called a SIPOC diagram. SIPOC is an acronym for suppliers, inputs, processes, outputs, and customers. This type of diagram is useful when it is not
clear who your customers are, where specifications for inputs exist, and when clarifying customer requirements. SIPOC diagrams are often used in Six Sigma projects.
Start
Customer
submits
application
Complete?
No
Front
desk
reviews
Action letter
Front desk
for decision
Department
specialist
logs in
Action?
Denied
Yes
Yes
Appealed
Back to beginning
depending on appeal
Withdrawn
by applicant
fIgure 10-5 Process Mapping: Home Occupation Process—
Proposed
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example 10-1 Process Maps
Problem: The well construction unit of a state department of water resources entered into a
multiyear project to update its database management system. As part of the process, the well
construction staff was asked to document its current process flows.
Solution: The resulting process map is shown in Figure 10-6. Through a brainstorming process, the well construction team was asked to rethink its processes to simplify the workflow
and to take advantage of new technology. The team worked together to develop the new
process, which resulted in a streamlined flow that required less time for drillers to receive
permits.
fIgure 10-6 Process Map with Responsibility of Existing Process
Clerical Staff Applicant
Drilling permit application submitted to Department of Water
Resources by owner, representative, or driller (application
package may include other documents such as maps
and schematics)
Application for drilling
permit received with fee
Receipt printed
Fee processed
Is fee
required?
Yes
Yes
No
No
Application reviewed
for completeness
Pull tag
Scan permit documents
and enter data into
required fields
Send e-mail to professional staff
that permit documents are available
on computer for review
Box paper permit
documents for storage
Send tag and receipt
to professional staff A
Return to
applicant
Application
complete?
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A CLOSER LOOK AT QUALITY 10-1 Extended Value Stream Mapping
of Supply Chains
Process maps are being used in the improvement of supply chain processes. Customers and suppliers
can collaborate to improve supply chains. This type of mapping has been referred to as extended supply chain mapping. Figure 10-7A shows a supply chain map for Global Corp, which includes supplier
processes, receiving, internal processes, shipping, and customer service processes.
Figure 10-7B shows a map of the improved process. Some comparisons of the existing and improved processes are as follows:
Results Metrics Prior State Improved State Percent Improvement
Lead time (days) 54 18 60
WIP (days) 11 1 91
Flexibility Limited 9% increase per week 300/year
Unit price $12,000 $10,000 16
Professional Staff
A
Review application package
images on computer for
regulatory compliance
Check drill site location
relative to ADC, GWMA,
or CGWA using spatial
computer tools
Is monitoring the well
program required by government
or in an ADC?
Send back for
certification
Are
documents certified
by P.E. or P.G.?
Develop conditions
for permit approval
Prepare draft permit
for management review
Approve?
Yes
No
Yes
No
Yes
Print permit copies for
applicant signature;
original to files
Paper
files Prepare letter
of denial
Return to
applicant
Petition for
reconsideration
Staff Manager
No
fIgure 10-6 (Continued)
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fIgure 10-7a Global Corp. Prior-State Extended Value Stream Map
Global Corp.
Mexico
Assembly
Distribution
Assembly Distribution
Global Corp.
Central American
HQ
8 Wk
Forecast
Monthly
5 Wk
Forecast
Global Corp.
Warehousing
Twice
Weekly
Daily
Intermodal change
Central
American
Supplier
Assembly
Plant
USA
Distance Traveled:
70 miles
12 days Lead Time 5 54 days
6X/YR
3 days
4 days
35 days
Travel
Distance Traveled: 2000 miles
Transport Time: 12 days
Distance Traveled: 700 miles,
Transport Time: 3 days
3 days
Weekly
Lead Time = 23.0 days
VA/T = 118.0 seconds
RM = 10.0 days
WP = 3.0 days
FG = 10.0 days
PCE = 0.0194%
fIgure 10-7B Global Corp. Ideal-State Extended Value Stream Map
Central
American
Aluminium
Company
Once
Weekly
3 days
5 days
Mexico
Distribution
USA
Global Corp.
C.A.
PROD
CTRL
Sales
Prod.
control
Daily
Daily
Daily
Assembly Plant
USA
Global Corp.
Canada
(Ontario)
Global Corp.
Mexico
14 days
3 days 1 day Lead Time 5 18 days
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check Sheets
Check sheets are data-gathering tools that can be used to provide data for histograms; they can
be either tabular, computer based, or schematic. An example of a tabular check sheet for a Pareto
chart is shown in Figure 10-8. It provides a chart for copier operators to mark each time a delay
occurs in setting up new jobs.
Setting up a check sheet involves the following steps:
1. Identify common defects occurring in the process.
2. Draw a table with common defects in the left column and time period across the tops of the
columns (see Figure 10-8) to track the defects.
3. The user of the check sheet then places check marks on the sheet whenever the defect is
encountered.
example 10-2 Check Sheets
Problem: A copying company wants to set up a check sheet so that it can keep track of error
sources. Following are the major error types with frequencies.
Solution: Figure 10-8 showed a check sheet for these data. The check sheet will be kept to monitor how well workers are adhering to the new procedures.
Type of Problem Frequency Percentage
Setup routines are not standardized 315 52.1%
Equipment needed for setup is missing 124 20.5
Internal and external setup tasks are not separated 87 14.4
Extensive machine resetting and paper change are needed 56 9.2
Other 23 3.8
Total 605 100%
Problem Type
Setup routines
not standardized
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Missing equipment
for setup
Failure to separate
internal and external
tasks
Extensive machine
resetting and paper
change
Other
fIgure 10-8 Copier
Problem Check Sheet
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histograms
As shown in Figure 10-9, histograms are simply graphical representations of data in a bar format.
(Note that a frequency chart is used for categorical data, whereas histograms are used for continuous numerical data.) Histograms are also used to observe the shape of data (see Figure 10-9). For
example, how are the data in an interval scale distributed? There are several rules for developing
histograms:
š The width of the histogram bars must be consistent (i.e., class widths are the same where
each bar contains a single class).
š The classes must be mutually exclusive and all-inclusive (or collective exhaustive).
š A good rule of thumb for the number of classes is given by the model
2k $ n (10.1)
where n is the number of raw data values and k is the number of classes. Solving this equation for k, we obtain
k $ log n/log 2 (10.2)
Using this formula, we find
Number of Observations Number of Classes
9 to 16 4
17 to 32 5
33 to 64 6
65 to 128 7
129 to 256 8
example 10-3 Histograms
Problem: The Big City Cafeteria wants to determine the distribution of its sales during lunchtime. On a given day, the manager randomly selects 40 sales from the sales register receipt. The
following table shows the sales (in dollars):
0.75 2.15 3.55 4.95 6.35 7.75 9.15
fIgure 10-9 Histogram from Example 10-3
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4.51 0.79 4.19 2.29
5.96 3.49 2.25 3.45
2.24 5.25 5.36 1.15
7.28 5.25 4.29 5.25
3.96 6.79 4.66 3.56
8.22 2.56 5.25 3.33
5.55 2.24 8.95 2.49
5.25 2.26 0.79 5.25
4.11 6.11 5.25 4.56
1.15 5.25 2.21 5.25
Develop a histogram of the sales.
Solution: It is helpful to compute the mean, standard deviation, maximum value, and minimum
value when developing a histogram because the histogram is often used to determine whether
the data are normally distributed. Following are these statistics from the previously given data:
Mean 5 4.20
Maximum value 5 8.95
Minimum value 5 .79
Difference 5 8.16
Sum 5 168
Using Formula (10.2)
k $ log 40/log 2
k $ 5.32
The number of classes is 6. Therefore,
Classes 5 6
Class width 5 8.16/6 5 1.36 ” 1.40
Classes 5 0.76–2.15; 2.16–3.55; 3.56–4.95; 4.96–6.35; 6.36–7.75; 7.76–9.15
The histogram is displayed in Figure 10-9. Thus, the manager finds that sales occur in a
skewed distribution with a mean of $4.20.
Scatter Diagrams
The scatter diagram or scatter plot is used to examine the relationships between variables.
These relationships are sometimes used to identify indicator variables in organizations. For
example, in a hospital, the postoperative infection rate has been found to be associated with
many different factors, such as the sterile procedures used by the doctors and nurses, cleanliness of the operating rooms, and sterile procedures for handling the utensils used in surgery.
Therefore, the postoperative infection rate is an important variable for hospital quality
measurement.
It is quite easy to develop scatter plots using the charting facilities in spreadsheet packages
such as Excel. Figure 10-10 shows a scatter plot of the relationship between conformance data
and prevention and appraisal quality-related costs in a real firm. Note that the figure shows the
unexpected outcome of higher-quality costs with higher levels of conformance. Later analysis
showed that this firm was trying to “inspect in” quality, meaning that it was throwing a lot of inprocess work away as a result of more rigorous inspection. Use the following steps when setting
up a scatter plot:
1. Determine your x (independent) and y (dependent) variables.
2. Gather process data relating to the variables identified in step 1.
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3. Plot the data on a two-dimensional plane.
4. Observe the plotted data to see whether there is a relationship between the variables.
(Note that it is helpful to plot the data in Excel or another spreadsheet and to perform a correlation test to determine whether the variables have a statistically significant
relationship.)
example 10-4 Scatter Diagrams
Problem: Healthy People, Inc., a company specializing in home health care solutions for U.S.
consumers, was a growing company. The company wanted to study the relationship between
absenteeism and the number of overtime hours worked by employees. Thirty employees were
randomly selected, and numbers of overtime hours were graphed against numbers of days absent
for the previous year (see Figure 10-11).
fIgure 10-10 Prevention Costs and Conformance
100
80
60
40
20
0
60 70 80
Conformance
50 90 100
Prevention and appraisal costs
fIgure 10-11 Scatter Plot of Overtime Hours versus Days Absent
7 6 5 4 3 2 1 0
0 50 100 150 200 250 300
Hours of overtime
350 400 450 500
Days absent
Series 1
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Employee Hours of Overtime Days Absent
1 243 3
2 126 2
3 86 0
4 424 6
5 236 3
6 128 0
7 0 0
8 126 2
9 324 3
10 118 0
11 62 0
12 128 3
13 460 6
14 135 1
15 118 1
16 260 2
17 0 1
18 126 1
19 234 2
20 246 3
21 120 1
22 80 0
23 112 1
24 237 3
25 129 2
26 24 1
27 36 0
28 128 2
29 246 3
30 326 6
This analysis showed that there appeared to be a positive relationship between the number of
days absent and hours of overtime. Subsequent analysis showed that, in fact, these variables were
significantly related. It led management to recalculate the actual cost of overtime.
control charts
Control charts are used to determine whether a process will produce a product or service with
consistent measurable properties. Because control charts are discussed in Chapters 11 and 12, they
will not be presented in detail here. Figure 10-12 illustrates two control charts usually used together.
cause-and-effect (Ishikawa) Diagrams
Often workers spend too much time focusing improvement efforts on the symptoms of problems rather than on the causes. The Ishikawa cause-and-effect or fishbone or Ishikawa
diagram is a good tool to help us move to lower levels of abstraction in solving problems.
The diagram looks like the skeleton of a fish, with the problem being the head of the fish,
major causes being the “ribs” of the fish, and subcauses forming smaller “bones” off the ribs.
A facilitator or designated team member draws the diagram after questioning why certain
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situations occur. It has been said that for each circumstance, the facilitator should ask
“Why?” up to five times. This is sometimes referred to as the “five whys.” Fishbone (causeand-effect) diagrams are created during brainstorming sessions with a facilitator by following these steps:
1. State the problem clearly in the head of the fish.
2. Draw the backbone and ribs. Ask the participants in the brainstorming session to identify
major causes of the problem labeled in the head of the diagram. If participants have trouble
identifying major problem categories, it may be helpful to use materials, machines, people,
and methods as possible bones.
3. Continue to fill out the fishbone diagram, asking “Why?” about each problem or cause of a
problem until the fish is filled out. Usually it takes no more than five levels of questioning
to get to root causes—hence the “five whys.”
4. View the diagram and identify core causes.
5. Set goals to address the core causes.
Figure 10-13 shows an Ishikawa diagram prepared for a wood mill that was experiencing
problems with wobbling blades in its saws. The symptom of the problem was the wobbly blades.
The major causes were associated with machines, materials, people, and methods. Concerning
people, it was found that workers were not properly trained. For machines, it was found that the
blades were being incorrectly set up off-center.
fIgure 10-12 Partial x‒ and R Charts for a Process
50
40
30
20
10
60
40
20
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
29.00 (A)
56.00 (A)
3.00
2.00
10.00
3.00
29.00 (A)
12.00
7.00
20.00
0.00
22.00
3.00
36.00 (A)
6.00
10.00
7.00
40.20 (A)
32.80 (A)
22.80 (A)
35.60 (A)
29.80 (A)
28.80 (A)
32.80 (A,D)
41.80 (A,D)
14.20
15.00
20.60
11.80 (A)
18.20
20.20
13.80
15.60
18.00
X chart
LCL 5 12.55
Mean 5 19.94
UCL 5 27.33
Range chart
LCL 5 0
Mean 5 12.81
UCL 5 27.08
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example 10-5 Ishikawa Diagrams
Problem: A team of employees from the adjudication team at a department of water resources
was assigned to improve its process. Adjudication is a process of going through the courts to
settle legal disputes, in this case concerning water rights. Prior to brainstorming improvements
for the process, the employees were asked to brainstorm some of the causes of problems with
the existing system. A fishbone (Ishikawa) diagram was used to help identify causes of problems
they were experiencing.
Solution: Figure 10-14 shows the resulting fishbone diagram. The fishbone diagram shows that
three major areas of concern are contractors, region office–state office communication, and database management. The facilitator used the “five whys” to get team members to reach lower
levels of abstraction. After reaching these lower levels of abstraction, participants were asked
to identify what they felt were major causes of the problems. This fishbone diagram was later
complemented with further brainstorming for issues relating to the adjudication process.
pareto charts
Pareto charts are used to identify and prioritize problems to be solved. They are actually frequency charts that are aided by the 80/20 rule adapted by Joseph Juran from Vilfredo Pareto, the
Italian economist. As you may remember, the 80/20 rule states that roughly 80% of the problems
are created by roughly 20% of the causes, which means that there are a vital few causes that create most of the problems. This rule can be applied in many ways, and 80% and 20% are only
estimates; the actual percentages may vary.
In a positive sense, a store manager could understand that 20% of the stock in a store holds
80% of the value of the store inventory; 20% of the customers might provide 80% of the revenue.
In a grocery store, a small number of quality problems created 80% of the complaints. The good
fIgure 10-13 Cause-and-Effect Diagram: Wobbling Saw Blade Example Source: Reprinted by
permission from Patrick Shannon.
Machines Materials
Methods People
Saw Blade
Wobbles
Lubrication Off-center
Loose connectors
Bearings out
Crooked blade
Shaft wear
Tilt
Technique
Tool
Wet wood
Wrong size washers
Vision
Lack of proper training
Judgment
Measurement
Inspection Axle hole wrong size
Health
Attitude
New worker Content
Quantity
Training
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fIgure 10-14 Adjudication Fishbone Diagram [Example 10-7]
Contractors
Don’t Know
Expectations More Technical
Reviews
Communication
Loss of Control
Stuff
Not Entered
on Database Hard to Know
Which Records
Are “in Play”
Too Many
Tools
Database
Management
Cost/expectations
QC for data
GIS Collection,
analysis,
Accountability field exams
QC monitoring
Not clear who
should do it
Get lost in
other work
Low priority
Storing and
filtering tough
Can’t know
everything
No documentation
or help
Can’t keep up
Training
GIS and WR
Two
Databases
Training
Not at Office
Length
of contract
Need minimum
qualifications
Disparate
Sources
Differences
between
Region Offices
Tech Sec Mgr
Bottleneck
Progress a
Moving Target
Technical People
and Lawyers
Laws and Rules
Differ by Region
Region Offices/
State Offices
Lack of
coordination/
consistency
No central
focal point
Communication Not available
mostly through
section manager
Hard to stay current
Overlap in Training
activities
Don’t have region
managers compare
practices
No liaisons
with region
offices
Preferences
Not defined
No process to deal with this
ADJUDICATION
CONCERNS
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news is that by focusing on the vital few, inventory can be controlled, satisfaction of the most
important customers can be increased, and 80% of the complaints can be eliminated. Here are
some rules for constructing Pareto charts:
š Information must be selected based on types or classifications of defects that occur as
a result of a process. An example might be the different types of defects that occur in a
semiconductor.
š Data must be collected and classified into categories.
š A frequency chart must be constructed, showing the number of occurrences in descending
order.
The steps used in Pareto analysis include these:
1. Gather categorical data relating to quality problems.
2. Draw a frequency chart of the data.
3. Focus on the tallest bars in the frequency chart first when solving the problem.
example 10-6 Pareto Charts
Problem: A copying company is concerned because it is taking too long for operators to set up
new printing jobs. They decide to use Pareto analysis to find out why setup times are taking so
long. The data gathered reflect the following major causes:
Type of Problem Frequency (Number of Times)
Equipment needed for setup is missing 124
Internal and external setup tasks are not separated 87
Setup routines are not standardized 315
Extensive machine resetting and paper change are needed 56
Other 23
Solution: First, order the problems by frequency and compute the percentage of problems related
to each cause:
Type of Problem Frequency Percentage
Setup routines are not standardized 315 52.1%
Equipment needed for setup is missing 124 20.5
Internal and external setup tasks are not separated 87 14.4
Extensive machine resetting and paper change are needed 56 9.2
Other 23 3.8
Total 605 100%
Next, draw a frequency chart of the results (Figure 10-15). This Pareto chart shows that nonstandardized procedures for setting up copying jobs are the most frequently occurring problem
that causes slow setups. Therefore, the company can institute a training program to routinize its
setups. This program will result in a significant reduction in setup slowdowns.
Two points should be made. We also could analyze these data from a number of different
perspectives, such as average time per type of delay or cost per type of delay. Also, this chart
shows graphically that the law of diminishing marginal returns does have a place in quality
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thinking. As the group addresses each problem, the savings from correcting the problems decrease. There is no guarantee, however, that addressing the fourth problem will take any less
effort than the first.
The Seven new ToolS for ImprovemenT
In addition to the basic seven tools of quality, there is another set of tools that focuses on group
processes and decision making: the new tools for management. The new seven (N7) tools were
developed as a result of a research effort by a committee of the Japanese Society for QC Technique
Development. They are shown in Figure 10-16 and are discussed in the following pages.
fIgure 10-15 Pareto
Analysis
350
Frequency
300
250
200
150
100
50
0
Setup routines
are not
standardized
Equipment
needed for setup
is missing
Internal and
external setup
tasks are not
separated
Extensive machine Other
resetting and paper
change are needed
fIgure 10-16 Seven
New Tools for
Management Source:
From M. Brassard, “The
Memory Jogger™ Plus+.”
Boston: GOAL/QPC, 2004.
Reprinted with permission
of GOAL/QPC.
Affinity diagram
Matrix diagram
Interrelationship digraph
123456
a b c d e f g h
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GOAL/QPC, the consulting firm, is a major force for disseminating information about the
N7 tools. GOAL/QPC recommends that the N7 tools be used in a “cycle of activity,”1 in which
one tool provides inputs to another tool. One possible cycle is shown in Figure 10-17, in which
the affinity diagram or interrelation digraph is being used as inputs to the tree diagram, and so
forth. Let us discuss each of these tools and the purposes they serve.
fIgure 10-16 (Continued)
Tree diagram Prioritization matrices
Process decision program chart Activitynetwork diagram
a b c d
X X 0
1
Brassard, M. “The Memory Jogger II.” Boston: GOAL/QPC, 2004. Reprinted from “The Memory Jogger Plus+” with
permission of GOAL/QPC, 12B Manor Parkway, Salem, NH 03079, www.goalqpc.com.
fIgure 10-17 Seven
Management and
Planning Tools: Typical
Flow Source: From
M. Brassard, “The Memory
Jogger™ Plus+,”
Boston: GOAL/QPC, 2004.
Reprinted with permission
of GOAL/QPC.
Known
Activity network
diagram
Affinity diagram Interrelationship
digraph
Tree Diagram/
systems flow
Prioritization
matrices
Matrix
diagram
Process decision
program chart
Creative Logical
Unknown
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The affinity Diagram
When we are solving a problem, it is often useful to first surface all the issues associated with the
problem. A tool to do this is the affinity diagram, which helps a group converge on a set number
of themes or ideas that can be addressed later. An affinity diagram creates a hierarchy of ideas
on a large surface, as shown in Figure 10-18. The steps used in establishing an affinity diagram
are as follows:
1. Identify the problem to be stated. Create a clear, concise statement of the issue that is
understood by everyone.
2. Give the team members a supply of note cards and a pen. Ask them to write down issues
that relate to the problem. There should only be one idea per card. Ask them to use at least
four or five words to clearly explain their thinking.
3. Allow only about 10 minutes for this writing activity.
4. Place the written cards on a flat surface.
5. Lay out the finished cards so all participants can see and have access to all the cards.
6. Let everyone on the team move the cards into groups with a similar theme. Do this work
silently because it does not help to discuss your thinking. Work and move quickly.
7. If you disagree with someone else’s placement of a note card, say nothing, but move it.
8. You reach consensus when all the cards are in groups, and the team members have stopped
moving the cards. Once consensus has been reached concerning placement of the cards,
you can create header cards.
9. Draw a finished affinity diagram and provide a working copy for all participants.
As illustrated in Figure 10-18, you should have a table with an issue statement, subissue header cards, and note cards with ideas. It will provide the basis for further discussion and
brainstorming.
Zoo personnel at a zoological park used an affinity diagram to help develop a mission
statement. The problem was stated as “Issues surrounding the mission of the Metropolitan
City Zoo.” The managers and zoo workers filled about 80 sticky notes with issues concerning
the zoo’s mission. Next, the team members placed the sticky notes into groups and ultimately
defined a mission with six major elements, which provided a foundation for a final mission
statement.
fIgure 10-18 Affinity Diagram
Issue
Ideas
Subissue 1
Ideas
Subissue 2
Ideas
Subissue 3
Ideas Ideas
Subissue 4
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fIgure 10-19 Affinity Diagram: Issues with Implementing the Sales Reference Tool
Evaluation
Important to
do it close to
right the first
time, but be
flexible to
make changes
later.
How do we
know people
are using it?
We should
have a party
when it starts
working well.
Does it solve
the problem of
not being
able to find
documents
needed?
Testing guide
before it’s
implemented
for everyone.
Process for
feedback for
fine-tuning
guide.
Evaluate it
once it’s in
place.
Do we need
additional
hardware/
software to
build it? Cost?
Support
We’ll need a
backup
system to
administer.
What do we do
if the system
goes down?
What about
system
crashes and
availability?
Available in
print when
systems are
down?
What do we do
if the network
is down?
What costs are
involved?
Training
What is the best
way to train?
Train backups
for administrative
support of
guide (i.e.,
Sheilah).
Selecting
someone to
provide training.
Amount of
training time
needed for
learning.
Train backups
to update for all
teams having
ownership of
links.
Training staff,
both on-site
and off-site
(owners who
use it).
Remote users:
Enabling them.
Making it work
for them.
Want more than
sales stuff.
Affinity Diagram: Issues with Implementing the Sales Reference Tool
Current
Information
Becoming
confident that
data/documents
are current.
Maintaining it:
Who will
maintain it
and keep it
current? Will
it be done on
a regular basis?
Purging out-ofdate or obsolete
information.
Getting other
departments to
update out-ofdate documents.
Process to
avoid
duplication.
Is it clear and
concise?
Is it cluttered
with items that
aren’t sales
tools?
Keeping the
links current.
Group versus
individual
training.
Buy-In
Avoid
perception
of taking
creativity from
salesperson.
Getting support
from internal
systems.
Getting other
departments to
keep information
current, put
documents in
our directory,
and utilize
similar
development
tools.
Get buy-in and
support from
users (other
teams and
information
suppliers).
How to
introduce?
Will people
use?
Building in
ramifications
if old or bad
data used
from another
source.
Size
Keeping scope
limited to
sales tools
and processes.
It is more
accessible for
senior
management to
make changes.
Keeping the
size and scope
manageable.
Users will
want writeaccess to it.
We can’t be
too fancy (i.e.,
graphics).
Features
Keeping search
engine as a
priority.
Finding a
format
everyone likes.
Building in the
solution selling
process and
making sure the
guide has all
the tools
people need.
Needs to be
fast and
responsive.
Do we have
resources to
build it in a
timely manner?
How does it
fit with other
programs
being
developed?
Making
resources
available on
demand.
How can
we get
international
to duplicate
or use as is?
Timing
Timing to
implement and
get the work
done.
Allotting
enough
resources to
build the
tool.
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example 10-7 Affinity Diagrams
Problem: The sales team at HealthWise Corporation, a supplier of medical information,
decided to develop a sales reference tool (SRT) as a means of improving its training processes for new salespeople in the field. It was decided that this SRT would be available on
the company intranet. A team of experienced salespeople was assembled who cataloged all
the current sales material in many different locations. These materials were then reviewed
by the team. Prior to performing preliminary design work for the SRT, the team members
had to identify issues relating to the implementation of the SRT. The results are shown in
Figure 10-19.
Solution: This analysis helped team members identify key issues in the design and implementation of the SRT. It was discovered that they needed to focus on eight issues in implementation:
evaluation, support, training, current information, buy-in, size, features, and timing. The notes
underneath the headers present some of the issues identified by the participants.
The Interrelationship Digraph
After completing the affinity diagram, it might be useful to understand the causal relationships
between the different issues that surfaced. Also, it is helpful to identify the most important issues
to be focused on when pursuing the solution to a problem. A finished interrelationship digraph
is shown in Figure 10-20. This interrelationship digraph shows the relationships between different issues. We will address how to develop this digraph, but note that the shaded boxes are major
fIgure 10-20 Interrelationship Digraph
Many
simultaneous
jobs
Poor needs
def inition
Customers
don’t know
what they want
Lack of
communications
What are issues
with missed
delivery dates?
Marketing
forecasts
inaccurate
Difficult to
phase in jobs
Too many
options
Frequent
updates to
editions
Short of
staff
Too many
hands in pot
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issues that need to be addressed when developing improvement strategies. The steps to complete
the interrelationship digraph are as follows:
1. Construct an affinity diagram to identify the issues relating to a problem. After you have
done this, place the cards with related issues in columns with gaps between the cards. It is
helpful to use sticky notes on a large piece of flipchart paper.
2. Create the digraph by examining the cards one by one, asking, “What other issues on this
digraph are caused or influenced by this issue?” As team members identify issues that are
related, draw a one-way arrow from the first issue (the cause) to the second issue (the one
influenced by the cause). Do this until all the issues have been discussed.
3. After reviewing the arrows and making needed revisions, count the numbers of arrows
pointing to each note, and write the numbers on the notes.
4. Identify the cards with the most arrows as the “key factors.” Experience has shown that
there should not be more than 5 to 10 key factors, depending on the issue being discussed.
Some cards may have several arrows, but for one reason or another they are not really key
factors; these cards can be dropped from consideration at this point. Boxes with the most
outgoing arrows tend to be root causes; those with incoming arrows tend to be performance indicators.
5. Draw a double box around the key factors and brainstorm ways to address these issues.
example 10-8 Interrelationship Digraphs
Problem: For the issues relating to sales reference tools in Figure 10-19, team members were
interested in knowing what issues had the greatest effects on other issues. This would help them
to know where to focus their efforts in coming weeks.
Solution: The cards from the affinity diagram in Example 10-7 were used to identify the relationships between the different issues. For presentation purposes, we used only the cards from
the first four columns in the affinity diagram (evaluation, support, training, and current information). The relationships were outlined using sticky notes and markers on a large piece of paper.
The results, shown in Figure 10-21, reveal that the need for a backup system, training, and keeping the links current were key issues in developing the SRT. The team paid special attention to
these aspects of the project. On a larger project, they might have established subteams to monitor
these aspects of the project.
Tree Diagrams
The tree diagram is useful to identify the steps needed to address the given problem. Figure 10-22
shows a tree diagram, which is very similar to a work breakdown structure used in planning projects. The following steps should be used to complete a tree diagram:
1. Assemble the header cards from the affinity diagram. From these cards, choose the header
card that represents the most important issue.
2. Once the goal statement has been determined, ask this: “What are the steps required to
resolve or achieve this major objective or goal?”
3. Once the major tasks have been identified, move to the next level under each task and ask
this for the second-level tasks: “What are the steps required to resolve or achieve this objective or goal?”
4. Continue doing this for successive levels until you have exhausted your ideas for steps.
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fIgure 10-21 Actual Interrelationship Digraph
Important to
do it close to
right the first
time, but be
flexible to
make changes
later.
How do we
know people
are using it?
We should
have a party
when it starts
working well.
Does it solve
the problem of
not being
able to find
documents
needed?
Testing guide
before it’s
implemented
for everyone.
Process for
feedback for
fine-tuning
guide.
Do we need
additional
hardware/
software to
build it? Cost?
What do we do
if the system
goes down?
Available in
print when
systems are
down?
Group versus
individual training.
What is the
best way to
train?
Train backups
for
administrative
support of
guide (i.e.,
Sheilah).
Selecting
someone to
provide
training.
Amount of
training time
needed for
learning? Train backups
to update for all
teams having
ownership of
links.
Training staf,
both on-site
and of-site
(owners who
use it).
Remote users:
Enabling them.
Making it work
for them.
Want more
than sales
stuf.
Becoming
confident that
data/documents
are current.
Maintaining it:
Who will
maintain it
and keep it
current? Will
it be done on
a regular basis?
Purging
out-of-date or
obsolete
information.
Getting other
departments
to update
out-of-date
documents.
Process to
avoid
duplication.
Is it clear and
concise?
Is it cluttered
with items that
aren’t sales
tools?
Keeping the
links current.
What costs
are involved?
Evaluate it once
it’s in place.
We’ll need a
backup
system to
administer.
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prioritization grid
A prioritization grid is used to make decisions based on multiple criteria. For example, when
choosing a technology, we might have a variety of alternative options. Also, the decision criteria
vary as to how to choose possible desired outcomes. When there are multiple alternatives and multiple criteria, a prioritization grid is a good way to inform your decision making without resorting to
more sophisticated analysis. Following are the steps required to make a prioritization grid:
1. Determine your goal, your alternatives, and the criteria by which a decision is to be made.
2. Place the selection criteria in order from most important to least important.
3. Apply a percentage weight to each of the criteria for each option. Apply a weight to each
of the criteria such that all the weights add up to 1 (for example, [criteria] A 5.40, B 5.30,
C 5.25, D 5.05).
4. Average the individual ratings for each criterion; then rank those average scores, with the
highest average ranked as 1, to determine final criteria rankings.
5. Rank each alternative with respect to the criteria. Add the rates for each alternative and
rank the sum of the scores for each alternative to determine final criteria rankings.
6. Multiply the final criteria ranking (from Step 4) by each corresponding alternative’s rank
(from Step 5). The result in each cell of the grid is called an importance score.
7. Add the importance scores for each alternative.
8. Rank each alternative according to importance. (The lower the score, the better.)
example 10-9 Prioritization Grid
A company had to choose between five possible machines for a service process with five criteria.
The criteria were ease of use, necessary maintenance, cost of the machine, expected life of the
machine, and reputation for the quality of the machine (see Table 10-1).
The three team members provided subjective importance ratings for each of the different
decision criteria. They are shown in Table 10-2.
The team members then provided ratings for each of the different machines as they related to each
criterion (see Table 10-3).
fIgure 10-22 Tree
Diagram Major Issue
Other minor tasks
Topics Topics
Subissues
Topics Topics Topics
Subissues
Topics Topics Topics
Subissues
Topics
TABLE 10-1 Decision Criteria
Alternatives Criteria
Machine A Ease of use
Machine B Maintenance
Machine C Cost
Machine D Expected life
Machine E Reputation
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TABLE 10-2 Importance Ratings
Criteria Person 1 Person 2 Person 3 Average Score Final Criteria Ranking
Ease of use 0.4 0.2 0.5 0.366 1
Maintenance 0.3 0.3 0.3 0.300 2
Cost 0.2 0.2 0.1 0.166 3
Expected life 0.05 0.1 0.05 0.066 5
Reputation 0.05 0.2 0.05 0.100 4
1 1 1
TABLE 10-3 Final Rankings
Ease of Use
Alternatives Person 1 Person 2 Person 3 Sum of Scores Final Ease of Use Ranking
Machine A 1 1 1 3 1
Machine B 2 3 2 7 2
Machine C 4 4 4 12 4
Machine D 5 5 5 15 5
Machine E 3 2 3 8 3
Maintenance
Alternatives Person 1 Person 2 Person 3 Sum of Scores Final Maintenance Ranking
Machine A 2 2 1 5 1
Machine B 1 3 2 6 2
Machine C 5 5 4 14 5
Machine D 4 4 5 13 4
Machine E 3 1 3 7 3
Cost
Alternatives Person 1 Person 2 Person 3 Sum of Scores Final Cost Ranking
Machine A 4 4 5 13 5
Machine B 5 3 4 12 4
Machine C 1 1 2 4 1
Machine D 2 2 1 5 2
Machine E 3 5 3 11 3
Expected Life
Alternatives Person 1 Person 2 Person 3 Sum of Scores Final Expected Life Ranking
Machine A 1 2 1
3 2
4 5
5 4
1 3
4 1
Machine B 2 7 2
Machine C 3 12 4
Machine D 4 13 5
Machine E 5 9 3
Reputation
Alternatives Person 1 Person 2 Person 3 Sum of Scores Final Reputation Ranking
Machine A 4 4 5
3 4
1 2
2 1
5 3
13 5
Machine B 5 12 4
Machine C 1 4 1
Machine D 2 5 2
Machine E 3 11 3
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The final rankings were computed by multiplying the various rankings by their importance. It looks like alternative C is the best choice. Note that the lowest score is the best (see
Table 10-4).
matrix Diagram
The matrix diagram is similar in concept to quality function deployment in its use of symbols,
its layout, and its application. Because the matrix diagram is one of the N7 tools, we mention it
here. However, the prior presentation of QFD is much more complete, so we will keep it short.
Like the other N7 tools, the matrix diagram is a brainstorming tool that can be used in a group
to show the relationships between ideas or issues. Matrix diagrams are simple to use and can be
used in two, three, or four dimensions. The steps are as follows:
1. Determine the number of issues or dimensions to be used in the matrix.
2. Choose the appropriate matrix.
3. Place the appropriate symbols in the matrix.
Figure 10-23 shows a responsibility matrix diagram. The legend at the bottom of the figure
shows the extent of responsibility among the different people. No example is provided here because we discussed QFD earlier in Chapter 7. This grid in Figure 10-23 gives a simplified version
of a QFD matrix.
TABLE 10-4 Combining Rankings
Final Criteria
Ranking
Final Ease of
Use Ranking
Final Maintenance
Ranking
Final Cost
Ranking
1 1 1 5
2 2 2 4
3 4 5 1
5 5 4 2
4 3 3 3
Final Expected Life Ranking Final Reputation Ranking
1 5
2 4
4 1
3 2
5 3
Scores
Machine A: 1(1) + 2(1) + 3(5) + 5(1) + 4(5) = 43
Machine B: 1(2) + 2(2) + 3(4) + 5(2) + 4(4) = 44
Machine C: 1(4) + 2(5) + 3(1) + 5(4) + 4(1) = 41
Machine D: 1(5) + 2(4) + 3(2) + 5(5) + 4(2) = 52
Machine E: 1(3) + 2(3) + 3(3) + 5(3) + 4(3) = 45
Final Rankings
1 C
2 A
3 B Machine C is the best choice.
4 E
5 D
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process Decision program chart
A process decision program chart is a tool to help brainstorm possible contingencies or problems associated with the implementation of some program or improvement. Figure 10-24 shows
such a chart in tree form (the outline form is not presented here). The steps are as follows:
1. When developing the tree diagram, place the first-level boxes in sequential order. (These
are the boxes in the first column in Figure 10-24.)
2. Moving to the second level, list implementation details at a fairly high level. Try to be allinclusive at a macro level.
3. At the third level, ask this: “What unexpected things could happen in this implementation?” or this: “What could go awry at this stage?”
4. At the fourth level, brainstorm possible countermeasures to the problems identified at the
third level.
5. Evaluate the countermeasures for feasibility, and mark those that are feasible with an O
and those that are not feasible with an X.
activity network Diagram
The activity network diagram, also known as a program evaluation and review technique
(PERT) diagram or a critical-path (longest path in time from beginning to end) diagram, is used
for controlling projects. Figure 10-25 shows an activity network PERT diagram with its nodes
and times. The nodes are circles, and the times are given in days. Activity network diagrams are
discussed in depth in Chapter 14.
fIgure 10-23 Responsibility Matrix Diagram
Reducing the Number of Billing Errors
Layout engineers
Software designers
Engineers
Human resources
Options
People needed
Systems
18
22
24
4 6
Total
Simplify
process
Revise
pricing
Lessen
options
Specify
costs
Improve
definition
Improve
database
High (9) [Prime responsibility]
Medium (3) [Secondary responsibility]
Low (1) [Kept informed]
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fIgure 10-24 Process Decision Program Chart
Update job
descriptions
Define job
requirements
Develop new
pay scales
Payroll systems
need to be
updated
It is difficult to
differentiate
job grades
Could result in
a redefinition
of departments
Refuse to
make changes
Get early
consensus
Employees fear
changes in job
assignments
Have an
employee
meeting
Establish a
no-grade-change
policy
Budget allocations
need to be
revisited
No budget
available
Violates
budget cycle
X O O X X O
fIgure 10-25 Activity Network Diagram
b4
f4
a
10
d8
e
15
i3
j9
h6
k
10
c6
g8
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reflections on the managerial n7 Tools
As you can see, the N7 tools are useful for managing long projects that involve teams. With the
B7 and N7 tools, you have a reasonably good set of skills that will help manage many projects.
They have been used successfully in many different settings and for many different purposes.
The power of these tools is that with the Plan–do–check–act (PDCA) cycle, they give
companies a simple and easy-to-understand methodology for solving unstructured problems.
They are especially useful when used in teams. Many of these tools are also fun to use. By using
them effectively, managers can reduce unproductive meeting time to a minimum and make good,
fact-based decisions.
oTher ToolS for performance meaSuremenT
There are other tools used in communicating performance to employees. The justification for these
tools is to present data in an economical and understandable way. We present three such tools.
Spider charts
Spider charts are graphs that present multiple metrics simultaneously in a two-dimensional
plane. Figure 10-26 shows a spider chart. In this case, we show six different metrics (A–F), and
report goals and results. A quick review of the figure shows that the firm has not met performance goals on metrics A, B, D, and E. The firm has met the goal relative to metric C and has
exceeded the goal on metric F.
Other values that might be included on spider charts besides current performance and results are baseline performance measures and benchmark values. At times, this information can
be found in QFD matrices.
Balanced Scorecards
A very important tool for measuring performance is a balanced scorecard. Balanced scorecards
are usually spreadsheets that are communicated to management on a regular basis—weekly,
monthly, quarterly, and annually. The usefulness of the balanced scorecard comes from integrating
financial measures of business success, such as key metrics, along with nonfinancial, operational
information about the business, such as customer satisfaction and process performance measures.
fIgure 10-26 Spider Chart Example
Metric A
Metric D
Goal
Current
Metric F
Metric E
Metric B
Metric C
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Figure 10-27 shows a very simplified layout for a balanced scorecard. Notice that this balanced scorecard combines financial, customer, process, and employee information into a single
form. Often, these forms are color-coded to show whether goals are being met or performance is
unsatisfactory. Scorecards, if used effectively, can be used to monitor and drive improvements in
performance.
fIgure 10-27 Balanced Scorecard Example
Objectives Measurement Target Initiative
Financial Performance
Profitability
More Customers
Less Investment
Market Value
Truckload Rev.
EVA Charge
Increase Market
Share by 5%
Increase Truck
Revenue by 10%
Promote Delivery
Service
Establish Specific
Delivery Routes
by Customer
Optimize Order
Prestaging Process
Teamwork and
Communication
Skills Training
Exceed Customer
Expectations 95%
85% by June
20XX
90% by June
20XX
Number of Orders
Delivered on
Date Promised
Number of Orders
Prestaged on
Time for Loading
Percent of Staff
Trained in
Teamwork
Orders Delivered
on Time
Lowest Prices
Efficient Staging
and Loading of
Customer Orders
Improved
Communication
Channels
Customer Satisfaction
Process Improvement
Employee Satisfaction
Strategic Theme
fIgure 10-28
Dashboard Example
Financial
Customer
Satisfaction
Process
Improvement
Performance
Employee
Satisfaction
Overall
Performance
Revenue $
200,000,001
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Dashboards
Dashboards look like electric meters or car dashboards. Figure 10-28 shows a dashboard that
looks like an electric meter. Each of the “gauges” on the dashboard shows a different metric.
Notice in this case that the gauges in Figure 10-28 match the metrics reported in our balanced scoreboard discussed in Figure 10-27. This dashboard quickly communicates performance
levels. Again, the focus is on easy, clear communication.
In this chapter we have briefly introduced the basic tools of quality. These tools should be
adapted to the specific needs of your company. You also do not need to always use all the tools
in a single project.
The B7 and N7 are useful in their simplicity and power. It is an easy undertaking to train
employees to use these tools. However, many companies provide the training and then wonder
why the employees don’t use them. The reason is that along with the tools, cultural change is
needed to ensure that implementation can be successful. Also, if management doesn’t support the
use of the tools in all possible situations, they do not become inculcated in the organization. In
the following chapters, we discuss the context within which these tools can be successful.
Summary
Key Terms
Activity network diagram
Affinity diagram
Balanced scorecard
Basic seven (B7) tools of
quality
Cause-and-effect (or fishbone
or Ishikawa) diagram
Check sheets
Control charts
Dashboards
Histogram
Interrelationship digraph
Matrix diagram
New seven (N7) tools
Pareto charts
Plan–do–check–act
(PDCA) cycle
Prioritization grid
Process decision program
chart
Process map
Scatter diagram or scatter
plot
SIPOC
Spider charts
Tree diagram
Discussion Questions
1. Why is it important to pursue quality management from a systems perspective?
2. Why is continual improvement necessary for a business organization?
3. The statement has been made that “A quality system is not just a series of boxes and arrows. It is
an interconnected, interdisciplinary network of people, technology, procedures, markets, customers,
facilities, legal requirements, reporting requirements, and assets that interact to achieve an end.” What
does this statement mean to you?
4. How do the basic tools work within W. E. Deming’s plan–do–check–act (PDCA) cycle as a process for
continual improvement?
5. What are the seven basic tools of quality? Who developed these tools?
6. Describe the purpose of a histogram.
7. Describe the purpose of a Pareto chart. Describe an instance (other than the one in the book) in which
a Pareto chart could be effectively used.
8. What are the three basic rules for constructing Pareto charts?
9. What is the purpose of a cause-and-effect (Ishikawa) diagram?
10. Describe the purpose of a check sheet. Describe an instance (other than the ones in the book) in which
a check sheet could be effectively used.
11. Describe the purpose of a scatter diagram.
12. Describe the purpose of a flowchart. What are three of the rules for designing and using flowcharts?
13. What is the purpose of a control chart?
14. Which of the seven (Ishikawa) tools of quality described in the chapter have been the most helpful to
you in your experiences? Make your answer as substantive as possible.
272 3DUW š ,PSOHPHQWLQJ4XDOLW\
15. Describe the purpose of an affinity diagram.
16. Describe the purpose of an interrelationship digraph.
17. Describe the purpose of tree diagrams. Describe an instance in which a tree diagram could be used.
18. Describe the purpose of a prioritization grid.
19. Describe the purpose of a matrix diagram. In what ways is the matrix diagram a brainstorming tool?
20. What is the purpose of a process decision program chart?
Problems
1. Develop a process map of washing a car. Include a high level of detail in your map. Make six recommendations for improvements to your process.
2. Take the process map from Problem 1 and develop it into an extended process map. Make five recommendations for simplifying the extended process as it exists.
3. Develop a process map for making chocolate chip cookies. Include a high level of detail if you need to.
You may need to consult a cookbook. Make three recommendations for improvements to your process.
Discuss these with the class.
4. Take the process map from Problem 3 and develop an extended value stream process map. Make recommendations for three improvements to the extended process. Be sure to include all suppliers and
logistics associated with the customers.
5. Develop a check sheet for defects in a flat-screen computer monitor.
6. Develop a check sheet for defects in a quality management class exam. Identify how you would use the
check sheet to improve performance on future exams.
7. Develop a histogram for the following data:
Employee Hours of Overtime Days Absent
1 243 3
2 126 2
3 86 0
4 424 6
5 236 3
6 128 0
7 0 0
8 126 2
9 324 3
10 118 0
11 62 0
12 128 3
13 460 6
14 135 1
15 118 1
16 260 2
17 0 1
18 126 1
19 234 2
20 246 3
21 120 1
22 80 0
23 112 1
24 237 3
25 129 2
26 24 1
27 36 0
28 128 2
29 246 3
30 326 6
&KDSWHU š 7KH7RROVRI4XDOLW\ 273
Develop two separate histograms for hours of overtime and days absent. How do the data appear to be
distributed?
8. Using the data in Problem 7, develop a scatter plot of hours of overtime versus days absent. Do the data
overtime hours and days absent appear to be correlated?
9. Develop a histogram using the following data:
4.7, 4.7, 5.0, 5.6, 5.6, 5.6, 5.9, 5.9, 5.9, 5.9, 6.2, 6.2, 6.2, 6.2, 6.2, 6.2, 6.5, 6.5, 6.5, 6.5, 6.5, 6.5, 6.8,
6.8, 9.8, 9.8, 9.8, 9.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 6.8, 7.1, 7.1, 7.1, 7.1, 7.1, 7.1, 7.1,
7.1, 7.1, 7.1, 7.1, 7.1, 7.1, 7.4, 7.4, 7.4, 7.4, 7.4, 7.4, 7.4, 7.4, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7,
7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 7.7, 8.0, 8.0, 8.0, 8.0, 8.0, 8.0, 8.3, 8.3, 8.3, 8.3, 8.3, 8.3, 8.6, 8.6, 8.6,
8.6, 8.6, 8.6, 8.9, 8.9, 8.9, 9.2, 9.2, 9.8.
Do the data appear to be normally distributed?
10. If you have 60 data points, use the log formula to determine how many classes you should use in your
histogram.
11. Use the logarithmic formula in the chapter to determine how many classes you should use for the following numbers of data:
a. 35 b. 200 c. 600
12. Think about the following questions, and develop fishbone diagrams for each of them:
a. What is the major service problem in your university?
b. What is the major thing that interferes with your study?
c. What is the major problem with your school newspaper?
d. What is the major social problem in society?
13. For the following data, develop a Pareto analysis. The letters A, B, C, D, E, and F are problems that
occur in a process. Which cause should you focus on first?
A B
B C
A A
C A
D A
A C
B A
D C
B B
A A
A C
B D
D B
C E
A F
B E
C A
D B
A A
A C
A D
B B
C B
B A
C A
A A
B D
A C
C B
A E
274 3DUW š ,PSOHPHQWLQJ4XDOLW\
14. For the following data, develop a Pareto chart. The letters V, X, Y, and Z are problems that occur in a
process. Which cause should you address first if the fixes for the problems are $1.00, $1.20, $.90, and
$2.00, respectively?
VXZZZYYXXYVVYYXXZZYZZYXXVYVYVYVYXXXYVYZVYXXXYVYVYVXXXXVVVVYYYYVYVYVYXYXYXVXVZZZXYXYXYVYYXZZZ
15. Either alone or as a team, draw a fishbone diagram about the following topics:
a. What are the causes of poor grades?
b. Why do college students drink too much?
c. Why do I not have enough money?
d. What are the causes of poor response times on the Internet?
16. Quality Is Personal by Roberts and Sergesketter is a popular book. In it, the authors recommend using
the basic tools of quality in our personal lives. Develop a check sheet to keep track of personal defects
you have in your life (such as sleeping too late, being too grumpy, and so on). Use this check sheet for
two weeks to track these personal defects. After two weeks, perform a Pareto analysis to determine
where you have the greatest need for improvement. Next, use the fishbone diagram to identify the
underlying causes of the personal defects. After making changes, use a control chart to track your
defects.
17. For the following data, draw a scatter diagram to see if time lost because of injuries and overtime hours
are related. What do you conclude?
Plant Lost Time Days Overtime Hours
A 5 254
B 3 114
C 6 350
D 4 219
E 10 496
F 5 218
G 7 279
18. Develop a process map for the registration process at your university. Analyze the number of valueadded and non-value-added steps.
19. Develop a process map for receiving financial aid at your university. Analyze the process and develop
a proposal for improvement.
20. With a team of students, develop an affinity diagram relating to the following problem statement:
“What are issues relating to finding a job in the current economy?” What did you find?
21. Form a team and develop an affinity diagram for the following problem statement: “What are issues
associated with completing a university or college degree in a reasonable amount of time?”
22. Using the affinity diagram from Problem 21, develop an interrelationship digraph. What do you generalize from the interrelationship digraph?
23. Develop a tree diagram for building a home.
24. Develop a tree diagram for writing a major research paper. Now take the steps you identified for this
project and develop an activity network diagram.
25. Complete the analysis for the following prioritization grid information by finding the final ranking:
Decision Alternatives
Machine 1
Machine 2
Machine 3
Machine 4
&KDSWHU š 7KH7RROVRI4XDOLW\ 275
Decision Criteria Importance
A .3
B .2
C .5
Final Rankings
Criterion A Ranking
Machine 1 1
Machine 2 2
Machine 3 3
Machine 4 4
Criterion B Ranking
Machine 1 3
Machine 2 2
Machine 3 4
Machine 4 1
Criterion C Ranking
Machine 1 4
Machine 2 2
Machine 3 1
Machine 4 3
26. Develop a process decision chart for completing your college degree.
CASES
Case 10-1 Corporate Universities: Teaching the Tools of Quality
Motorola Solutions Learning: learning.motorolasolutions.com
Sears University: www.searsholdings.com
Although most of us are familiar with major public universities such as Penn State, Colorado–Boulder, Georgia,
and Ohio State, we are typically unfamiliar with corporate universities such as Motorola Solutions Learning,
Intel University, and the AT&T Learning Center. This is
because corporate universities are a fairly new concept,
and they are created to serve the needs of a particular
company’s employees and other stakeholders.
The term corporate university has been adopted
by firms that have significantly upgraded their training
and development activities by creating learning centers
within their corporations. These learning centers are
typically designed to prioritize a firm’s training initiatives, and to quickly share with a firm’s employees the
skills, techniques, and best practices that are necessary
to remain competitive. For example, when a new quality
tool or technique is developed, it is often the responsibility of a firm’s corporate university to develop a plan to
equip the firm’s employees with the skills necessary to
quickly incorporate the new tool or techniques into their
work areas.
Following are brief descriptions of two corporate
universities. After reading these descriptions, ask yourself the following rhetorical question: “Are these corporations well equipped to teach their employees the tools
of quality?”
Motorola Solutions Learning (MSL)
Motorola Solutions Learning (MSL) began as the
Motorola Training and Education Center. Initially, the
purpose of MSL was to help Motorola strengthen its
training efforts and build a quality-focused corporate
276 3DUW š ,PSOHPHQWLQJ4XDOLW\
culture. Through the years, MSL has grown in both size
and stature and now has a staff of more than 400 employees and seven facilities across the world. The stated
objectives of MSL are as follows:
š To provide training and education to all Motorola
employees
š To prepare Motorola employees to be best-inclass in their industries
š To serve as a catalyst for change and continuous
improvement to position Motorola Corporation
for the future
š To provide added value to Motorola in the marketing and distribution of products throughout the
world
To accomplish these objectives, MSL does many
things. For example, each of the company’s employees
is required to take a minimum of 40 hours per year of
job-relevant training and education. MSL also provides
consulting services in a number of areas to its employees, including benchmarking, cycle time reduction,
quality improvement processes, and statistical tools and
problem-solving techniques.
One unique aspect of MSL is that it reaches beyond the Motorola Corporation. MSL provides training
and certification programs for Motorola suppliers and
also provides consulting services and training for other
corporations on a fee basis.
Sears University
Sears University was established with the ambitious
goal of becoming an integral part of the company’s
turnaround efforts. The university was opened with the
idea of offering a wide selection of formal training and
self-study courses for Sears’s employees. In its first year
of operation, approximately 10,000 of the company’s
employees participated in formal programs that ranged
from one day to one week in duration. Another 4,000
employees completed self-study courses each month.
In addition to offering training programs in areas
such as merchandising, operations, customer service,
and human resources management, Sears University also
provides programs designed to help company employees
function as change agents and strategic leaders within the
corporation. For example, participants in financial management training programs use computer-based simulations to model the impact of various financial strategies
on business unit performance. Particular attention is paid
to trying to help employees see the company’s operations
from the customer’s perspective. The courses are taught by
seasoned line managers along with professional facilitators
and Sears University personnel.
Discussion Questions
1. Are corporate universities a good idea? If so,
why?
2. How can a corporate university do a better job of
teaching a firm’s employees the “tools of quality”
than traditional training programs?
3. Select a corporate university and visit its Web site.
How does the company’s corporate university facilitate the company’s overall quality-related goals
and initiatives?
Case 10-2 Lanier: Achieving Maximum Performance by Supporting
Quality Products with Quality Services
Lanier: www.lanier.com
Lanier, a wholly owned subsidiary of Harris Corporation, is the largest independent distributor of office
equipment in the world. The company, which is headquartered in Atlanta, Georgia, has more than 1,600 sales
and services centers in more than 100 countries worldwide. Lanier’s product mix includes copy machines, fax
machines, voicemail, dictation/transcription systems,
presentation systems, and other related office products
and services.
Throughout most of its corporate history, Lanier
has been a sales-driven organization. The company was
founded in 1934 by Tommy Lanier and his two brothers as the distributors of “Ediphone” dictation machines in the southeastern portion of the United States.
In 1955, Lanier entered the copier business as an independent distributor of 3M “Thermofax” dry process
copiers. Through the years, the company’s product line
has broadened, and Lanier has experienced consistent
&KDSWHU š 7KH7RROVRI4XDOLW\ 277
growth and profitability. It has also earned an excellent
reputation in the office products industry.
Rather than manufacturing its own products,
Lanier’s business strategy has been to partner with companies such as 3M, Toshiba, and Canon to develop a
cohesive line of high-quality office equipment. The biggest challenge for Lanier has been to differentiate itself
from its competitors. Although the company sells highquality products, its products are similar to the products
sold by other office equipment vendors. To find a point
of differentiation from its competitors, Lanier decided
to shift from a sales-driven company to a company focused on customer satisfaction. The company realized
that to make this shift successfully, it had to build a corporate culture that supported its products with quality
customer service.
Lanier worked hard to develop quality services
to complement its products. To accomplish this, the
company developed several specific quality-related programs. These programs included the following:
š Customer Vision
š Performance Promise
š 100 Percent Sold
š Lanier Team Management Process
The premise behind the Customer Vision program
was to encourage each employee to see the company’s
business through the customers’ eyes and respond appropriately. The Performance Promise program was designed to offer the industry’s best performance pledge
by guaranteeing total product satisfaction (or replacement at no charge); and by providing a 24-hour, toll-free
helpline; free loaners when repairs are necessary; and a
10-year guarantee on the availability of service, parts,
and supplies for all Lanier products. The 100 Percent
Sold program challenged the company’s employees
with the goal of having every Lanier customer buy
all his or her office products from Lanier. Finally, the
Lanier Team Management Process was a quality program that stressed a never-ending process of continuous
improvement in quality, reliability, and performance in
all things Lanier did at all levels within the company.
In addition to specific programs to support service and product quality, the company also started to
see itself as a consulting organization rather than a sales
organization. By giving potential customers good advice before the sale, the company found that it could
create a seamless stream of Lanier involvement in satisfying a customer’s office product needs. The stream
includes presale advice, the actual sale, and after-sale
service. Lanier also has coupled its new initiatives with
extensive training for its employees and incentive programs tied to the company’s quality-related goals.
Lanier has been successful in complementing
its quality products with quality customer service. As
evidence of this, the company received several prestigious awards from its customers, including DuPont’s
“Partners in Excellence Award,” Pacific Bell’s “Quality
Partner Award,” and Chevron’s “Alliance Supplier
Award.”
Discussion Questions
1. Why was it important for Lanier to develop specific programs, such as Customer Vision and
Performance Promise, to facilitate its dual emphasis on quality products and quality services?
2. What steps has Lanier taken to reinforce the importance of quality services to its employees?
3. Do you believe that Lanier continued to be successful? Why or why not?

 

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